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Loosely speaking, are all modern economies 'Keynesian' in their stance on spending during downturns?

Economics Asked on March 4, 2021

Keynesian economics is defined as:

increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.

Do all modern economies adopt a Keynesian fiscal stance during significant economic downturns? Or have some demonstrated that they will not increase government spending at all during downturns?

Notes:

  • To make the question less ambiguous, please assume a country is ‘Keynesian’ if government spending was intentionally increased by at least 2.5% during a downturn of at least 1% at any point in the last 50 years (and ‘somewhat Keynesian’ if government spending increased by 1.5% during a downturn of at least 1%).

  • Example: According to this, Australia would be ‘Keynesian’, since it increased spending by 4% in response to a 1.6% downturn in 2008/9.

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